Casella Waste Systems Inc. has promoted Ed Johnson to president of the company as the company’s losses grew in its most recent quarter.
The Rutland, Vt.-based Casella said in a news release that it appointed Johnson, its chief financial officer, to president and chief operating officer. He replaces Paul Larkin, who left the company. Ned Coletta moves up to senior vice president, chief financial officer and treasurer from his former position as vice president of finance and investor relations.
For its second fiscal quarter Casella reported a net loss of $21.1 million, or 68 cents per share, compared with $765,000, or 3 cents per share, in the year-ago period. Revenue fell 7.3 percent to $120.3 million compared with $129.9 million in the 2011 quarter.
For the first six months the net loss totaled $29.5 million, or $1.01 per share, compared with $3.83 million, or 14 cents per share, a year earlier. Revenue dropped 6 percent to $241.5 million compared with $257.1 million in 2011.
The most recent quarter included $15.5 million in one-time charges, including the company’s reorganization and debt extinguishment. Results also were hurt by lower recycling commodity prices and landfill volumes.
In addition, Casella said it completed its sale of the Maine Energy Recovery facility to the city of Biddeford, Maine. The city will pay Casella $6.65 million over 21 years and enter into new 10-year waste handling and recycling collection agreements with the company.
Because of the lower-than-expected recycling prices, landfill volumes and other businesses, Casella adjusted its guidance for the year. It now projects earnings before interest, taxes, depreciation and amortization (EBITDA) of between $96 million and $100 million, and revenues between $468 million and $478 million.
Regarding the executive restructuring, John Casella, chairman and CEO, said, "Ed Johnson brings the background and experience to the challenge of running a nimble, customer-focused business whose mission is growing cash flow and profitability. The board and I have immense faith in his ability to run the day-to-day operations of this company and succeed."